Market Overview

Prestige Brands Holdings, Inc. Reports 53.4% Revenue Increase & Record Earnings for Second Quarter of Fiscal 2013

Share:
TARRYTOWN, N.Y.--(BUSINESS WIRE)--

Prestige Brands Holdings, Inc. today announced results for the second fiscal quarter ended September 30, 2012, including revenues of $161.9 million, an increase of 53.4% over the prior year comparable period's revenues of $105.5 million. Revenues for the six month period totaled $308.9 million, an increase of 53.8% over the prior year six month period's revenues of $200.8 million. The second quarter and year-to-date growth was driven by the Company's core over-the-counter (OTC) healthcare brands, which experienced 11.3% organic growth in the second fiscal quarter, and revenue from the Company's acquisition of 17 brands from GlaxoSmithKline (GSK), which was completed during the fourth quarter of fiscal 2012.

In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information to aid investors in understanding the company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About non-GAAP Financial Measures” section at the end of this earnings release.

Reported net income for the second fiscal quarter was a record $19.2 million or $0.38 per diluted share, versus $12.9 million or $0.26 per diluted share, in the prior year comparable period, an increase of 48.6% in reported net income and 46.2% in diluted earnings per share. Adjusted net income for the second fiscal quarter was $21.3 million, or $0.42 per diluted share compared to $12.9 million or $0.26 per diluted share, in the prior year comparable period, an increase of 64.7% in adjusted net income. The fiscal second quarter's adjusted net income excludes expenses related to the GSK Transition Services Agreement (TSA) and integration costs totaling $2.1 million net of taxes, or $0.04 per diluted share, which were in line with previously communicated expectations.

Reported net income for the first six months of fiscal 2013 was $33.9 million, or 22.3% higher than the prior year comparable period's results of $27.7 million. Adjusted net income increased $14.4 million or 58.2%, for the first six months of fiscal 2013 to $39.2 million, or $0.77 per diluted share, compared to $24.8 million or $0.49 per diluted share, in the prior year comparable period. The current year's adjusted net income for the six month period excludes expenses related to the TSA, integration and other costs totaling $5.4 million net of taxes, or $0.11 per diluted share. The prior year's comparable six month period excluded a one time net gain associated with a legal settlement and other one-time costs totaling approximately $2.9 million or $0.06 per diluted share.

Reported gross profit for the second fiscal quarter was $90.5 million, an increase of $36.6 million, or 68.0%, over the prior year comparable quarter of $53.9 million. Adjusted gross margin was $92.2 million and 57.0% of revenues for the second fiscal quarter compared to $53.9 million and 51.1% of revenues in the prior year comparable period. The current year period excludes integration and other costs of $1.7 million related to the acquired GSK brands. The year-over-year improvement in adjusted gross margin is primarily a result of a greater proportion of revenue generated from the higher gross margin OTC segment, which now represents approximately 85% of overall revenues and 95% of brand contribution.

Revenues for the OTC healthcare segment were $137.9 million, 74.3% higher than the prior year's second quarter results of $79.2 million. The increase in revenues in the OTC segment was a result of the effectiveness of the increased marketing and advertising support behind core OTC brands, as well as the acquisition of 17 North American brands from GSK. The Company's nine legacy core OTC brands increased 11.3% in the second quarter, representing the ninth consecutive quarter of organic revenue increases for the legacy core OTC product group. Strong sales gains were recorded for Little Remedies®, Compound W®, Efferdent®, PediaCare®, and Chloraseptic®. Net revenues for the OTC segment for the first six months of fiscal 2013 were $264.1 million, 75.7% higher than the prior year's results of $150.4 million, reflecting the growth in the legacy core OTC brands and the acquisition of the GSK brands. Revenues for the Household Cleaning segment, which represent approximately 15% of corporate revenues and 5% of brand contribution, were $23.9 million for the second fiscal quarter and $44.7 million year-to-date. This represents a 9.4% reduction in the second quarter over the prior year comparable period revenues of $26.4 million, and an 11.4% reduction in the prior year's comparable period six month results of $50.5 million.

Portfolio Management

As part of its strategy to focus on core OTC brands and manage the overall portfolio, the Company divested the Phazyme® gas treatment brand to C.B. Fleet Company, Inc. on October 31, 2012. Phazyme is a non-core OTC product which was acquired in January 2012 from GSK and accounted for less than 1% of revenues for the fiscal year-to-date. The Company will use all proceeds of the sale to pay down debt.

Commentary and Outlook

“Our excellent second quarter performance reflects the success of our strategic initiatives in three key areas; the full integration of the brands acquired from GSK that transformed our company and financial profile, the effectiveness of increased advertising and promotion support behind core brands, and our dedicated focus to superior execution resulting in core OTC growth,” said Matthew M. Mannelly, CEO. “Core OTC growth increased 11.3% in the second quarter, representing the ninth consecutive quarter of organic growth, category outperformance, and market share gains.”

“Our industry-leading and consistent free cash flow combined with a solid balance sheet puts Prestige in the unique position to be able to quickly and reliably de-lever, and at the same time, provides greater flexibility for future M&A opportunities,” Mr. Mannelly said.

“With our strong first half performance, our strategy in place, and a well-positioned portfolio of consumer brands, we are confident in raising our earnings guidance for fiscal 2013 from $1.22-$1.32 to $1.37-$1.42 per share,” he said.

Free Cash Flow and Debt Reduction

Free cash flow is a "non-GAAP financial measure" and is presented here because management believes it is a commonly used measure of liquidity, indicative of cash available for debt repayment and acquisitions. Non-GAAP Free Cash Flow is defined and reconciled to GAAP Net Cash Provided by Operating Activities in the section entitled, "About Non-GAAP Financial Measures" below. The Company's free cash flow for the second fiscal quarter ended September 30, 2012 was $41.6 million, an increase of $23.8 million over the prior year comparable period's free cash flow of $17.8 million. For the six month period, free cash flow totaled $55.1 million compared to $33.2 million in the prior year comparable period. The Company continues to expect free cash flow of approximately $110 million for fiscal 2013, in line with what was previously stated.

The Company's net debt at September 30, 2012 was $1,061 million, reflecting a reduction of $42.0 million during the quarter ended September 30, 2012. The Company's covenant defined leverage ratio was 4.59, down from approximately 5.25 at the time of the closing on the acquisition of the GSK brands.

Conference Call and Accompanying Slide Presentation

The Company will host a conference call to review its first quarter results on November 1, 2012 at 8:30 am EDT. The toll-free dial-in numbers are 866-730-5764 within North America and 857-350-1588 outside of North America. The conference pass code is "prestige". The Company will provide a live internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of http://prestigebrands.com. The slide presentation can be accessed just before the call from the Investor Relations page of the website by clicking on Webcasts and Presentations. Telephonic replays will be available for two weeks following the completion of the call and can be accessed at 888-286-8010 within North America and at 617-801-6888 from outside North America. The pass code is 44647322.

About Prestige Brands Holdings, Inc.

The Company markets and distributes brand name over-the-counter and household cleaning products throughout the U.S., Canada, and certain international markets. Core brands include Chloraseptic® sore throat treatments, Clear Eyes® eye care products, Compound W® wart treatments, The Doctor's® NightGuard® dental protector, the Little Remedies® and PediaCare® lines of pediatric over-the-counter products, Efferdent® denture care products, Luden's® throat drops, Dramamine® motion sickness treatment, BC® and Goody's® pain relievers, Beano® gas prevention, Debrox® earwax remover, and Gaviscon® antacid.

Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "assumptions," "target," "guidance," "outlook," "plans," "projection," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe”, "potential," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include, without limitation, statements regarding the progress of the GSK integration, the growth of our portfolio and sales volume, our intentions regarding development of the brands we acquired from GSK, our outlook and expected financial results, including earnings per share and free cash flow, and our plans to deliver superior value to our stockholders. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors. A discussion of factors that could cause results to vary is included in the Company's Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.

     
 

Prestige Brands Holdings, Inc.

Consolidated Statements of Income and Comprehensive Income

(Unaudited)

 

Three Months Ended
September 30,

Six Months Ended
September 30,

(In thousands, except per share data) 2012   2011 2012   2011
Revenues
Net sales $ 161,323 $ 104,572 $ 307,243 $ 198,879
Other revenues 532   972   1,609   1,960  
Total revenues 161,855 105,544 308,852 200,839
 
Cost of Sales
Cost of sales (exclusive of depreciation shown below) 71,310   51,638   134,703   97,065  
Gross profit 90,545   53,906   174,149   103,774  
 
Operating Expenses
Advertising and promotion 23,508 13,073 43,833 23,306
General and administrative 12,585 8,861 28,736 18,711
Depreciation and amortization 3,296   2,570   6,591   5,120  
Total operating expenses 39,389   24,504   79,160   47,137  
Operating income 51,156   29,402   94,989   56,637  
 
Other (income) expense
Interest income (3 ) (1 ) (5 ) (3 )
Interest expense 19,663 8,280 39,513 16,860
Gain on settlement       (5,063 )
Total other expense 19,660   8,279   39,508   11,794  
Income before income taxes 31,496 21,123 55,481 44,843
Provision for income taxes 12,252   8,174   21,582   17,126  
Net income $ 19,244   $ 12,949   $ 33,899   $ 27,717  
 
Earnings per share:
Basic $ 0.38   $ 0.26   $ 0.67   $ 0.55  
Diluted $ 0.38   $ 0.26   $ 0.66   $ 0.55  
 
Weighted average shares outstanding:
Basic 50,364   50,278   50,353   50,231  
Diluted 51,225   50,671   51,166   50,659  
 
Comprehensive income, net of tax:
Currency translation adjustments 66   (42 ) 24   (52 )
Total other comprehensive income (loss) 66   (42 ) 24   (52 )
Comprehensive income $ 19,310   $ 12,907   $ 33,923   $ 27,665  
 
 
     
 

Prestige Brands Holdings, Inc.

Consolidated Balance Sheets

(Unaudited)

 
 
(In thousands)

Assets

September 30,
2012
March 31,
2012
Current assets
Cash and cash equivalents $ 29,006 $ 19,015
Accounts receivable, net 84,767 60,228
Inventories 53,836 50,861
Deferred income tax assets 5,973 5,283
Prepaid expenses and other current assets 5,840 11,396
Current assets held for sale 185   252  
Total current assets 179,607 147,035
 
Property and equipment, net 6,128 1,304
Goodwill 173,928 173,702
Intangible assets, net 1,380,499 1,386,357
Other long-term assets 33,653 35,713
Long-term assets held for sale 13,808   14,165  
Total Assets $ 1,787,623   $ 1,758,276  
 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 41,883 $ 26,726
Accrued interest payable 13,867 13,889
Other accrued liabilities 32,651   23,308  
Total current liabilities 88,401   63,923  
 
Long-term debt
Principal amount 1,090,000 1,135,000
Less unamortized discount (10,280 ) (11,092 )
Long-term debt, net of unamortized discount 1,079,720   1,123,908  
 
Deferred income tax liabilities 180,798   167,717  
Total Liabilities 1,348,919   1,355,548  
 
 
Stockholders' Equity
Preferred stock - $0.01 par value
Authorized - 5,000 shares
Issued and outstanding - None
Preferred share rights 283 283
Common stock - $0.01 par value
Authorized - 250,000 shares
Issued - 50,500 shares at September 30, 2012 and 50,466 shares at March 31, 2012 505 505
Additional paid-in capital 393,951 391,898
Treasury stock, at cost - 181 shares at September 30, 2012 and March 31, 2012 (687 ) (687 )
Accumulated other comprehensive loss, net of tax 11 (13 )
Retained earnings 44,641   10,742  
Total Stockholders' Equity 438,704   402,728  
Total Liabilities and Stockholders' Equity $ 1,787,623   $ 1,758,276  
 
 
   
 

Prestige Brands Holdings, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

Six Months Ended September 30,

(In thousands) 2012   2011
Operating Activities
Net income $ 33,899 $ 27,717
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 6,591 5,120
Deferred income taxes 12,391 5,962
Amortization of deferred financing costs 2,060 565
Stock-based compensation costs 1,973 1,657
Amortization of debt discount 812 458
Lease termination costs 975
Loss on disposal of equipment 51
Changes in operating assets and liabilities, net of effects of acquisitions
Accounts receivable (24,530 ) (5,075 )
Inventories (2,904 ) (6,672 )
Prepaid expenses and other current assets 5,556 1,794
Accounts payable 15,150 3,594
Accrued liabilities 8,350   (1,654 )
Net cash provided by operating activities 60,374   33,466  
 
Investing Activities
Purchases of property and equipment (5,266 ) (307 )
Proceeds from escrow of Blacksmith acquisition 1,200
Proceeds from sale of property and equipment 15
Acquisition of brands from GSK purchase price adjustments (226 )  
Net cash (used in) provided by investing activities (5,477 ) 893  
 
Financing Activities
Repayments of long-term debt (70,000 ) (40,000 )
Repayments under revolving credit agreement (8,000 )
Borrowings under revolving credit agreement 33,000
Proceeds from exercise of stock options 80 571
Shares surrendered as payment of tax withholding   (271 )
Net cash used in financing activities (44,920 ) (39,700 )
 
Effects of exchange rate changes on cash and cash equivalents 14 (32 )
Increase (decrease) in cash and cash equivalents 9,991 (5,373 )
Cash and cash equivalents - beginning of period 19,015   13,334  
Cash and cash equivalents - end of period $ 29,006   $ 7,961  
 
Interest paid $ 36,524   $ 15,790  
Income taxes paid $ 656   $ 5,844  
 
 
       
 

Prestige Brands Holdings, Inc.

Consolidated Statements of Income

Business Segments

(Unaudited)

 
 
Three Months Ended September 30, 2012 Six Months Ended September 30, 2012
OTC

Healthcare

  Household

Cleaning

  Consolidated OTC

Healthcare

  Household

Cleaning

  Consolidated
(In thousands)
Net sales $ 137,771 $ 23,552 $ 161,323 $ 263,775 $ 43,468 $ 307,243
Other revenues 164   368   532   345   1,264   1,609
Total revenues 137,935 23,920 161,855 264,120 44,732 308,852
Cost of sales 53,469   17,841   71,310   100,868   33,835   134,703
Gross profit 84,466 6,079 90,545 163,252 10,897 174,149
Advertising and promotion 22,046   1,462   23,508   39,899   3,934   43,833
Contribution margin $ 62,420   $ 4,617   67,037 $ 123,353   $ 6,963   130,316
Other operating expenses 15,881   35,327
Operating income 51,156 94,989
Other expense 19,660   39,508
Income before income taxes 31,496 55,481
Provision for income taxes 12,252   21,582
Net income $ 19,244   $ 33,899
 
 
    Three Months Ended September 30, 2011     Six Months Ended September 30, 2011
OTC

Healthcare

  Household

Cleaning

  Consolidated OTC

Healthcare

  Household

Cleaning

  Consolidated
(In thousands)
Net sales $ 78,998 $ 25,574 $ 104,572 $ 150,001 $ 48,878 $ 198,879
Other revenues 158   814   972   357   1,603   1,960
Total revenues 79,156 26,388 105,544 150,358 50,481 200,839
Cost of sales 33,085   18,553   51,638   61,869   35,196   97,065
Gross profit 46,071 7,835 53,906 88,489 15,285 103,774
Advertising and promotion 12,155   918   13,073   20,576   2,730   23,306
Contribution margin $ 33,916   $ 6,917   40,833 $ 67,913   $ 12,555   80,468
Other operating expenses 11,431   23,831
Operating income 29,402 56,637
Other expense 8,279   11,794
Income before income taxes 21,123 44,843
Provision for income taxes 8,174   17,126
Net income $ 12,949   $ 27,717
 
 

About Non-GAAP Financial Measures

We define Non-GAAP EBITDA as earnings before interest expense (income), income taxes, depreciation and amortization, income or loss from discontinued operations or the sale thereof and Non-GAAP Adjusted EBITDA as earnings before interest expense (income), income taxes, depreciation and amortization, income or loss from discontinued operations and the sale thereof, gain on settlement, loss on extinguishment of debt, certain other legal and professional fees and acquisition-related costs. We define Non-GAAP Adjusted Gross Margin as Gross Profit before certain acquisition and integration-related costs. We define Non-GAAP Adjusted Operating Income as Operating Income before certain other legal and professional fees, acquisition and integration-related costs. We define Non-GAAP Adjusted Net Income as Net Income before gain on settlement, loss on extinguishment of debt, certain other legal and professional fees, acquisition and integration-related costs, income or loss from discontinued operations and the sale thereof, the applicable tax impacts associated with these items and the tax impacts of state tax rate adjustments and other non-deductible items. Non-GAAP Adjusted EPS is calculated based on Non-GAAP Adjusted Net Income and the weighted average number of common and potential common shares outstanding during the period. We define Non-GAAP Free Cash Flow as net cash provided by operating activities less cash paid for capital expenditures. Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS and Non-GAAP Free Cash Flow may not be comparable to similarly titled measures reported by other companies.

We are presenting Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS and Non-GAAP Free Cash Flow because they provide additional ways to view our operations, when considered with both our GAAP results and the reconciliation to net income and net cash provided by operating activities, respectively, which we believe provide a more complete understanding of our business than could be obtained absent this disclosure. Each of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS and Non-GAAP Free Cash Flow is presented solely as a supplemental disclosure because: (i) we believe it is a useful tool for investors to assess the operating performance of the business without the effect of these items; (ii) we believe that investors will find this data useful in assessing our ability to pursue acquisitions or to service or incur indebtedness; and (iii) we use Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income and Non-GAAP Adjusted EPS internally to evaluate the performance of our personnel and also as a benchmark to evaluate our operating performance or compare our performance to that of our competitors. The use of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS and Non-GAAP Free Cash Flow has limitations and you should not consider these measures in isolation from or as an alternative to GAAP measures such as operating income, net income, and net cash flow provided by operating activities, or cash flow statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity.

The following tables set forth the reconciliation of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS and Non-GAAP Free Cash Flow, all of which are non-GAAP financial measures, to GAAP Gross Profit, GAAP Operating Income, GAAP Net Income, GAAP Diluted EPS and GAAP Net cash provided by operating activities, our most directly comparable financial measures presented in accordance with GAAP.

     

Reconciliation of GAAP Gross Margin to Non-GAAP Adjusted Gross Margin:

 

Three Months Ended
September 30,

Six Months Ended
September 30,

2012   2011 2012   2011
(In thousands)
GAAP Total Revenues $ 161,855   $ 105,544   $ 308,852   $ 200,839  

Adjustments:

Additional slotting costs associated with GSK     411    
Total adjustments     411    
Non-GAAP Adjusted Total Revenues $ 161,855   $ 105,544   $ 309,263   $ 200,839  
 
GAAP Gross Profit $ 90,545   $ 53,906   $ 174,149   $ 103,774  

Adjustments:

Additional slotting costs associated with GSK 411
Inventory step-up charge associated with acquisitions 23
Additional product testing costs associated with GSK 220
Additional supplier transition costs associated with GSK 1,661     1,661    
Total adjustments 1,661     2,315    
Non-GAAP Adjusted Gross Margin $ 92,206   $ 53,906   $ 176,464   $ 103,774  
Non-GAAP Adjusted Gross Margin % 57.0 % 51.1 % 57.1 % 51.7 %
 
     

Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income:

 

Three Months Ended
September 30,

Six Months Ended
September 30,

2012   2011 2012   2011
(In thousands)
GAAP Operating Income $ 51,156   $ 29,402   $ 94,989   $ 56,637

Adjustments:

Additional slotting costs associated with GSK 411
Inventory step-up charge associated with acquisitions 23
Additional product testing costs associated with GSK 220
Additional supplier transition costs associated with GSK 1,661 1,661
Legal and professional fees associated with acquisitions 39 98 775
Unsolicited proposal costs 534
Transition and integration costs associated with GSK 1,684     5,811  
Total adjustments 3,384     8,758   775
Non-GAAP Adjusted Operating Income $ 54,540   $ 29,402   $ 103,747   $ 57,412
 
 
     

Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA:

 

Three Months Ended
September 30,

Six Months Ended
September 30,

2012   2011 2012   2011
(In thousands)
GAAP Net Income $ 19,244 $ 12,949 $ 33,899 $ 27,717
Interest expense, net 19,660 8,279 39,508 16,857
Income tax provision 12,252 8,174 21,582 17,126
Depreciation and amortization 3,296   2,570   6,591   5,120  
Non-GAAP EBITDA: 54,452   31,972   101,580   66,820  

Adjustments:

Gain on settlement (5,063 )
Additional slotting costs associated with GSK 411
Inventory step-up charge associated with acquisitions 23
Additional product testing costs associated with GSK 220
Additional supplier transition costs associated with GSK 1,661 1,661
Legal and professional fees associated with acquisitions 39 98 775
Unsolicited proposal costs 534
Transition and integration costs associated with GSK 1,684     5,811    
Total adjustments 3,384     8,758   (4,288 )
Non-GAAP Adjusted EBITDA $ 57,836   $ 31,972   $ 110,338   $ 62,532  
 
     

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income and related Adjusted Earnings Per Share:

 
Three Months Ended September 30, Six Months Ended September 30,
2012  

2012
Adjusted
EPS

  2011  

2011
Adjusted
EPS

2012  

2012
Adjusted
EPS

  2011  

2011
Adjusted
EPS

(In thousands)
GAAP Net Income $ 19,244   $ 0.38   $ 12,949   $ 0.26   $ 33,899   $ 0.66   $ 27,717   $ 0.55  

Adjustments:

Gain on settlement (5,063 ) (0.10 )
Additional slotting costs associated with GSK 411 0.01
Inventory step-up charge associated with acquisitions 23
Additional product testing costs associated with GSK 220 0.01
Additional supplier transition costs associated with GSK 1,661 0.03 1,661 0.03
Legal and professional fees associated with acquisitions 39 98 775 0.02
Unsolicited proposal costs 534 0.01
Transition and integration costs associated with GSK 1,684 0.03 5,811 0.11
Tax impact of adjustments (1,300 ) (0.02 ) (3,407 ) (0.06 ) 1,617 0.03
Tax impact of state rate adjustments and other non-deductible items             (237 ) (0.01 )
Total adjustments 2,084   0.04       5,351   0.11   (2,908 ) (0.06 )
Non-GAAP Adjusted Net Income and Adjusted EPS $ 21,328   $ 0.42   $ 12,949   $ 0.26   $ 39,250   $ 0.77   $ 24,809   $ 0.49  
 
 
     

Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow:

 

Three Months Ended
September 30,

Six Months Ended
September 30,

2012   2011 2012   2011
(In thousands)
GAAP Net cash provided by operating activities $ 45,632 $ 18,023 $ 60,374 $ 33,466
Additions to property and equipment for cash (4,068 ) (231 ) (5,266 ) (307 )
Non-GAAP Free Cash Flow $ 41,564   $ 17,792   $ 55,108   $ 33,159  
 

Prestige Brands Holdings, Inc.
Dean Siegal, 914-524-6819

View Comments and Join the Discussion!